America's 400 Best Big CompaniesThe Best Of The BestAlex Davidson 01.08.07

Conglomerates

United Technologies

Putting its own veterans in charge of new acquisitions and immediately cutting costs helped $46 billion (sales) United Technologies
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) score three straight quarters of almost 20% earnings growth last year. After acquiring the refrigeration division of Germany's Linde AG for $305 million two years ago, United Technologies assigned 30 of its managers to turn the company into a clone of its Carrier unit within a year. Result: From zero, operating profit margins are now up to 7%, with management forecasting double digits by next year.

United Technologies' sales growth has averaged 10% each year for the past five years, and the company's total return in that time has averaged 19%--strong numbers that a majority of its peers could not achieve. The company routinely spends between 3% and 3.5% of annual sales on research and development across all six of its businesses, including NASA space suit manufacturer Hamilton Sundstrand, and United Technologies ranks third among its dozen peers in total dollars spent. The company smartly moved into China early; Otis has captured one-third of the elevator market there. Since 1994 its margins have improved to 19% from 7%.